After GOP Tax Giveaway Fuels $1 Trillion Stock Buyback Bonanza, Schumer, Wyden & Warren Unveil Stock Buyback Accountability Act To Quadruple Buyback Tax And Finally Close[...]

Legislation Would Quadruple The Stock Buyback Excise Tax, Close Corporate Buyback Tax Loopholes

Washington D.C. - Today, Senate Democratic Leader Chuck Schumer (D-NY), Finance Committee Ranking Member Ron Wyden (D-OR) and Banking Committee Ranking Member Elizabeth Warren (D-MA) introduced the Stock Buyback Accountability Act of 2026 to increase the stock buyback excise tax from 1 percent to 4 percent and shut down loopholes solely benefitting corporate executives. The Stock Buyback Accountability Act can be viewed here.

After Trump and Republicans slashed the corporate tax rate from 35 to 21 percent in 2017, they promised raises, new hiring, and investment in American workers. What corporations delivered instead was a buyback bonanza: S&P 500 buybacks surged more than 50 percent in 2018, from roughly $530 billion to over $800 billion. History has repeated in 2025 with the passage of Republicans' Big Ugly Betrayal, when buybacks crossed $1 trillion for the first time ever.

Today, Senate Democratic Leader Chuck Schumer (D-NY), Finance Committee Ranking Member Ron Wyden (D-OR) and Banking Committee Ranking Member Elizabeth Warren (D-MA) are fighting back against corporate greed and introducing the Stock Buyback Accountability Act. This legislation would quadruple the stock buyback excise tax and shut down a loophole that allows corporations to reduce their buyback tax liability by showering their highest paid executives with stock options. The legislation builds on Democrats' enactment of a 1 percent stock buyback excise tax in the Inflation Reduction Act and eliminates tax advantages for buybacks over dividends or investment.

"While workers are struggling to afford gas and groceries, corporate CEOs are choosing to spend billions in tax giveaways to buy back their own stocks, jacking up prices and lining their pockets. That's not an economy, that's a racket. Americans deserve better," said Leader Schumer. "Time and again, Republicans claim that slashing taxes for billionaires and the biggest corporations will trickle-down to working people. But after the 'Big, Ugly Betrayal' & the 2017 Trump Tax Scam companies broke records buying back their own stock and enriching shareholders instead of raising wages, investing in their workers, or lowering costs. Our bill will end special treatment for buybacks and encourage companies to invest in workers, innovation, and long-term growth."

"Every time Republicans sweep an election they shower corporations with new tax breaks, and then corporations shower their wealthy shareholders and executives with new stock buybacks," said Senator Wyden. "We need to dial up the tax on these buybacks, and if corporations decide they're better off investing in workers and long-term growth, that's a great outcome."

"After getting massive tax breaks from Donald Trump and Republicans in Congress, giant corporations are turning around and delivering stock buybacks at record highs," said Senator Warren. "It's shameful that wealthy shareholders and executives are profiting while American families pay through the roof for groceries, gas, and rent. This bill is an important step forward in making corporations pay their fair share."

The top 1 percent now own more than 50 percent of all stock, and buybacks have become just another way for corporations and the ultra-wealthy to avoid paying taxes at the expense of middle-class American families and workers. Every dollar spent buying back stock is a dollar not spent raising wages, expanding the workforce, or creating new jobs. Instead of rewarding shareholders, these companies should be investing in the future of their companies.

After Democrats enacted an excise tax on stock buybacks in the Inflation Reduction Act, buybacks temporary declined. However, buybacks still retain tax advantages for corporations, who will continue to prioritize rewarding their shareholders over their workers. This legislation would end this tax advantage.

Leader Schumer has been outspoken on the need to increase taxes for stock buybacks. In 2019, he penned an op-ed with Senator Sanders calling for a limit to corporate stock buybacks. In 2022, he led the passage of the Inflation Reduction Act, which enacted the original stock buyback tax. Last month, Leader Schumer introduced, with Senators Wyden and Bennett (D-CO), legislation that would increase the excise tax on stock buybacks of large oil and gas companies from 1 percent to 25 percent.

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